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Article: Fitch Downgrades Klamath Cogeneration Project to 'B-'; Removes from Watch Negative.
- Article from:
- Business Wire
- Article date:
- January 12, 2006
CopyrightCOPYRIGHT 2006 Business Wire. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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NEW YORK -- Fitch Ratings has downgraded the rating on the City of Klamath Falls, OR (the city) senior secured revenue bonds due 2025 to 'B-' from 'BB+' and removed the Rating Watch Negative. The bonds are secured solely by the revenues of the 484-megawatt (MW) natural gas-fired Klamath Cogeneration Project (KCP) and other KCP assets.
The rating action incorporates the expectation of continued depressed financial performance due to on-going reduced plant utilization, attributed to high natural gas prices. Specifically, high natural gas prices have led KCP's primary off-takers to reduce their dispatch of the facility, as allowed under their respective purchase ...